Knight-Swift Gains Edge in LTL as they Secure Purchase of
Dependable Highway Express

Knight-Swift Transportation Holdings Inc., a big name in the freight transport business, has bought Dependable Highway Express, Inc. (DHE). DHE is a less-than-truckload (LTL) carrier that serves the Southwest U.S. This deal, which took effect on July 30, 2024, helps Knight-Swift boost its LTL services.

Growing LTL Services

Knight-Swift’s CEO, Adam Miller, said the deal is a big step. “We are excited to take the next step toward building a nationwide LTL business. This deal helps us grow in key markets like California, Arizona, and Nevada. It increases our LTL terminal and door counts by about 10%. Now, we can cover about 70% of the U.S. population.”

By buying DHE, Knight-Swift can now offer coast-to-coast service. This is expected to boost Knight-Swift’s earnings right away.

DHE’s Legacy and Future

DHE has a strong reputation for integrity and reliability. Ronald Massman, CEO of Dependable, said he is proud of DHE’s legacy. “The entire Massman family is proud of the DHE LTL team and their hard work. While we never planned to sell, we admire how Knight-Swift is building a leading national LTL business.”

DHE will keep operating under its current name as part of the AAA Cooper corporate group. Joe Finney, the current Chief Operating Officer of DHE, will become its President.

Financial Impact and Market Position

The financial details of the deal were not shared, but DHE made about $122 million in revenue over the past year. This buy pushes Knight-Swift’s annual LTL revenue to over $1 billion, making it a top player in the LTL market. Knight-Swift is now close to being one of the top-10 LTL carriers, with a 10% increase in its terminal and door count.

Knight-Swift Gains Edge for Growth

This is Knight-Swift’s third big step into the LTL market. In 2021, the company bought AAA Cooper Transportation and Midwest Motor Express. These moves helped grow its LTL services. Adding DHE’s 14 terminals will help Knight-Swift serve more customers, especially in the Southwest.

Knight-Swift’s recent actions show its goal to grow in the LTL sector. This includes buying or leasing many terminals and planning to open more facilities in 2024. The company aims to build a strong national LTL network, with the Northeast as the only major area not yet covered.

Future Prospects

The DHE buy is set to bring many benefits, including more chances for employees and better services for customers. Knight-Swift’s smooth integration of DHE will be key to these benefits.

Working together, Knight-Swift and DHE will take a big step in growing the LTL market. As Knight-Swift expands, it will be able to meet the needs of more customers across North America.

Looking Ahead

Knight-Swift’s purchase of DHE is a major step in its goal to build a top national LTL business. With a larger network and more services, Knight-Swift is ready to offer better services and more opportunities. As they work on the integration, both companies aim to ensure a smooth transition and continued top-notch service.